Etihad Airways, Etihad Airport Services, airberlin, Air Serbia, Air Seychelles and Alitalia have successfully raised a further US$500 million in a second platform financing transaction, following the success of last year’s award-winning bond which raised US$700 million.

A roadshow was announced on Monday 16
May 2016 to a positive response from the international financial community,
followed by the official launch of the transaction a week later on Monday 23
May 2016.

James Hogan, President and Chief
Executive Officer of Etihad Aviation Group, said: “With this second successful transaction, the international financial
markets have continued to show their belief in the Etihad Airways Partners
story.

“Our
equity partner strategy is creating a total which is greater than the sum of
its parts, a grouping which can work together to improve revenues, reduce costs
and uncover exciting new business synergies.

“This
transaction shows the strength of that grouping, as well as the strength of the
individual members. This second tranche of combined fund-raising is part of our
long term capital strategy.”

The funds raised by the transaction
will be again used largely for capital expenditure and investment in fleet, as
well as for refinancing, depending on each individual airline’s needs.

During a series of roadshow meetings in
Abu Dhabi and Dubai and global investor calls with the London, Asian and
European markets, the shared vision and strategies of the airlines were laid
out to financial institutions. These highlighted the growing network
coordination and revenue development initiatives, coupled with joint
procurement and business synergy projects, across the airlines.

The funds have been raised through a
special purpose vehicle, EA Partners II B.V. ADS Securities, Anoa Capital,
Goldman Sachs International and Integrated Capital are acting as Placement
Agents and Joint Bookrunners.

Etihad
Airways was assigned a Long-term Issuer Default
Rating of ‘A’ with a Stable Outlook, by Fitch Ratings.

Etihad Airways Partners’ (EAP) initial platform finance transaction has
been recognised in recent months with key awards, namely as Innovative Deal of
the Year by Airfinance Journal; as Emerging Europe Middle East and Africa Bond
of the Year by the market intelligence organisation International Financing
Review (IFR); and as Debt Financing Deal of the Year Middle East by Global
Transport Finance. Earlier this month, it was also named Corporate
Finance Deal of the Year by the Middle East chapter of the Association of
Corporate Treasurers (ACT ME).